Report: Opel factories in Germany, Belgium face closure

German weekly magazine Der Spiegel said on Saturday that Opel was threatening to close its German plants in Eisenach and Bochum as well as its Belgian site in Antwerp.
 
Citing documents it said Opel had submitted to the German government, the magazine said this scenario would lead to 20 percent of the company's 55,000 staff in Europe being laid off.
 
An alternative plan involved the loss of only 3,500 jobs -- providing wage concessions were made, it added.
 
Without providing sources, Der Spiegel also said the German finance and economy ministries rejected directly injecting cash into Opel and that they agreed that any support should be restricted to guarantees, or at most loans to the firm.
 
GM Europe submitted a rescue plan for Opel last week under which the German unit along with UK-based Vauxhall Motors would be partly spun off from its parent. It said the independent unit needs 3.3 billion euros ($4.17 billion) in state aid to ensure liquidity in the coming months.
 
GM has said it is considering "several" plant closures or spin offs in Europe where it employs 55,000.
From: Automotive News Europe

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